Competition in the property market in the UK is pushing buyers to higher prices

Since the supply of new residential properties in the UK continuously decreases, more and more buyers willing to pay a price greater than the seller asks just to get to the property of any object.

As follows from the data published by the National Association of real estate agencies in the UK, over the past six months, from September 2013, the number entering the market of residential properties has dropped by about a third. As a result, the market has intensified the phenomenon of competition. Buyers, fearing that their property will be sold, bid more than the asking price. Approximately 19% of all properties in March 2014 was sold more expensive than the original price of the seller.

Due to the fact that more and more willing to pay a higher price, increasing the number of agreements concluded in the branches.

Another consequence of the reduction of the housing stock on the market – significantly reduce the number of first-time buyers afford homes. If in February these buyers was 29% of the total number, then in March they became – 25 %, which shows the first signs of deterioration in the fast moving last year’s market.

More and more homeowners who, being in despair that he had not found a suitable option for moving, decided to convert their existing housing.

The crisis of lack of new real estate has led to the fact that the vast majority of Britons, polls, expect a rise in prices for residential property in the UK average of 8.8% in the next 6 months. The survey 4972 home owners in the UK showed that 95% of respondents expect price increases on houses and flats in the UK within the next six months. On the basis of the unprecedented trust of the market, the pace of price growth will double this year compared to last.

About 42% of homeowners have begun to actively invest in improving their homes to cash in on capital gains. And of course, amid record low mortgage rates, significantly increased the number of people planning to buy a property this year.

® Maxim Savitsky 23.04.2014

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